Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2020 Earnings Presentation
95 slides from Dominion Energy's earnings presentation, Feb 12, 2021
Slide 1: Q4 2020 earnings call
Q4 2020 earnings call February 12, 2021
Slide 2: Important note for investors
Important note for investors This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations, estimates and projections concerning the busine
Slide 3: Tom Farrell, Executive Chairman
Tom Farrell Executive Chairman 3
Slide 4: Compelling investment proposition
Compelling investment proposition Comprehensive total shareholder return Industry-leading 6.5% ~3.5% ~10% ESG EPS growth rate dividend shareholder through 2025 yield return profile Five-year 6% Industry’s largest annual dividend Pure-play regulated $32B growth state-regulated decarbonization growth
Slide 5: Strategically repositioned
Strategically repositioned Premier state-regulated utility operating segments OH VA UT 88% state- NC regulated SC utility segments¹ Utility operations in attractive states 12%¹ ✓ Customer/economic growth Contracted Assets ✓ “Common sense” regulation (Zero-carbon generation) ✓ Sustainability ¹ Based
Slide 6: Purpose-driven
Purpose-driven Comprehensive stakeholder approach Dominion Energy is driven by our belief that the best companies seek to: ✓ Consider the interests of all stakeholders as critical to success including employees, customers & communities and investors ✓ Adopt ambitious Investors climate goals that dri
Slide 7: Employees: Safety
Employees Safety OSHA recordable incident rate¹ ~35% improvement vs. 2019 ~80% safer than industry average 2.05 100 employees each work year Number of recordables per 1.78 1.44 1.34 1.32 1.06 1.02 1.04 1.00 0.92 0.88 0.80 0.65 0.68 0.62 0.41 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 8: Customers & Communities
Customers & Communities Embracing our role as a public-service company Residential electric rates (cents per kWh)¹ Select 2020 community initiatives ▪ Customer disconnections avoided: Over 255,000 18.4 ▪ Payment plan enrollments: Over 330,000 COVID relief ▪ Virginia arrears relief: $127M ▪ Energy as
Slide 9: Environment: Investing in support of our clean-energy profile
Environment Investing in support of our clean-energy profile Five-year growth capital (2021—2025) ~$32B $10B/43% vs. prior five-year (2019-2023) growth capex plan¹ Zero-carbon generation & energy storage ▪ Offshore wind ~82% $17B / 52% ▪ Solar ▪ Energy storage ▪ Nuclear relicensing Emissions reduct
Slide 10: Environment: Decarbonization initiatives extend beyond 5-year plan
Environment Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life Up to $15B Total Energ
Slide 11: Environment: Material emissions reductions
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 37% ~55%↓ 45% ~70%— ~70% ~95% 7% 80%↓ Net zero zero & (conforms to 1.5o low Paris Accord emitting 45% Goals) 52
Slide 12: 2020 year in review
2020 year in review Looking to the future Update Status Achieved all-time safety record Robust customer-focused COVID response Announced Net zero by 2050 target Bipartisan passage of Virginia Clean Economy Act (VCEA) sets Virginia on cutting- edge path to decarbonization and green-economy gr
Slide 13: Jim Chapman, Chief Financial Officer
Jim Chapman Chief Financial Officer 13
Slide 14: Operating earnings per share
Operating earnings per share Actual versus guidance ($ per share) Fourth quarter 2020 Full-year 2020 $3.54 $3.63 $3.63 $0.87 Unfavorable weather $3.37 $0.81 $0.82 impact on utility earnings: ($0.09) $0.73 Unfavorable weather impact on utility earnings: ($0.01) Actual¹ Weather Guidance¹ Actual¹ Weath
Slide 15: Track-record of successful execution
Operating earnings per share Track-record of successful execution Weather normalized operating EPS vs. guidance GT&S sale announcement Upper end guidance Guidance midpoint Lower end guidance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 5 years o
Slide 16: Guidance: Operating earnings per share
Guidance Operating earnings per share +10%¹ ▪ 2021 guidance-implied annual growth rate $4.00 (10%) consistent with $3.50 $3.70 July 5 guidance range ▪ Long-term growth rate (6.5%) extended through 2025 ▪ Q1 2021 guidance: $1.00—$1.15 2020 2021 Through guidance midpoint guidance 2025 ¹ % increase mea
Slide 17: Guidance: Dividends per share
Guidance Dividends per share¹ $2.52 ▪ Target payout-ratio of ~65% ▪ Long-term growth rate (6%) extended through 2025 2021 Through guidance 2025 ¹ All dividends subject to Board approval 17
Slide 18: Consolidated financial outlook: Five-year growth capital summary
Consolidated financial outlook Five-year growth capital summary Dominion Dominion Gas Contracted Energy Energy Total Distribution Assets Virginia South Carolina 2021—2025 growth capex $23.8 $4.5 $1.7 $2.2 $32.2 ($B) ▪ Zero-carbon ▪ Infrastructure ▪ Customer growth ▪ Long-term generation / storage mo
Slide 19: Dominion Energy Virginia: Rate base components
Dominion Energy Virginia Two primary components of rate base, two very different regulatory constructs VA base VA riders Total Rates established by SCC under Rates incl. true-up established annually by SCC² “triennial review” framework (Electric transmission rates established by 13% FERC) CAGR ~$45B
Slide 20: Consolidated financial outlook: Illustrative sources and uses
Consolidated financial outlook Illustrative sources and uses Annual average: 2021—2023 Sources Uses ~$3.1B ~$2.4B ~$7.6B ~$6.6B ~$0.4B Growth ~65% Maintenance Operating (+) equity¹ (+) fixed income, net (-) dividends² Investing cash flow (incl. STD) cash flow ¹ DRIP & ATM ² Includes average common d
Slide 21: Equity capital raising activities
Consolidated financial outlook Equity capital raising activities¹ Annual issuance ($M) Dividend reinvestment At-the-market Total (“DRIP”) (“ATM”) 2021E $300M $0M $300M 2022E 300M 0—200M 300—500M 2023E 300M 100—300M 400—600M 2024E 300M 300—500M 600—800M 2025E 300M 300—500M 600—800M Total $1.5B $0.7—$
Slide 22: Balance sheet
Balance sheet Continued improvement in 2020 CFO pre-WC / debt¹ Pension + OPEB funding No change to existing ratings targets ▪ DEI: High BBB range ~15%² 100% ▪ OpCos: A range 97% 14.2% 94% 13.8% 92% 89% 85% 12.0% 11.0% 2018A 2019A 2020A 2018A 2019A 2020A 2016A 2017A 2018A 2019A 2020A Pension Pension
Slide 23: CFO summary
CFO summary Focus on execution ▪ Weather-normal quarterly (20th consecutive quarter) and full-year operating EPS above the midpoint of guidance ▪ Initiated 2021 full-year operating EPS guidance that represents (guidance midpoint to guidance midpoint) a 10% annual increase ▪ Affirmed 6.5% operating E
Slide 24: Bob Blue, Chief Executive Officer
Bob Blue Chief Executive Officer 24
Slide 25: Virginia Clean Economy Act of 2020 (VCEA)
Virginia Clean Economy Act of 2020 (VCEA) Transforming Virginia’s economy and environment The VCEA calls for a multi-faceted approach Renewable portfolio standard¹ to achieving renewable portfolio requirements % of DEV’s VA retail load² generated by renewable sources 100% ▪ 100% zero-carbon generati
Slide 26: Offshore wind: Virginia 2.6GW initial deployment
Offshore wind: Virginia 2.6GW initial deployment Providing significant economic and environmental benefits Test project installed turbine Economic benefits¹ ▪ 2,000 construction & permanent clean-energy jobs in VA (6MW) ▪ ~$300M economic output & pay/benefits per year ▪ ~$11M state and local tax rev
Slide 27: Offshore wind: Virginia 2.6GW initial deployment
Offshore wind: Virginia 2.6GW initial deployment Providing significant economic and environmental benefits Attractive leasehold location ✓ Nov. 2013 113,000-acre leasehold acquired via auction for $1.6M ▪ Minimal overlap with shipping ▪ No proximal OSW leaseholds ✓ Sep. 2019 Final approval issued by
Slide 28: Solar
Solar Virginia (cost-of-service investment) Cumulative gross DEV (utility) owned Timeframe (incl. 3rd party-owned projects) portion² By 2025 3.0 2.0 VCEA capacity By 2028 6.0 3.9 targets (GW)¹ By 2030 10.0 6.5 By 2036 16.1 10.5 Filing Annual Recovery Regulated cost-of-service rider (subject to appro
Slide 29: Solar: Enterprise-wide
Solar Enterprise-wide Enterprise-wide cumulative owned solar (GW) CAGR 2020—25 2020—30 2020—35 Regulated cost-of-service 52% 35% 26% 13.4 Long-term contracted 16% 8% 5% GW 10.0 Total 24% 16% 13% GW 6.4 GW 2.2 0.0 GW GW 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2
Slide 30: Energy storage
Energy storage Virginia (cost-of-service investment) VCEA energy storage targets (cumulative MW)¹ Existing pilot projects 3rd party-owned projects (PPAs with DEV) (35%) Location: Powhatan County Capacity: 10MW AC/2MW DC DEV (utility) owned (65%) 2,700MW batteries (paired with solar) (Rider-eligible)
Slide 31: Nuclear relicensing
Nuclear relicensing Virginia (cost-of-service investment) Surry North Anna ▪ 20-year license extensions ▪ Rider-recovery eligible # of units 2 2 (subject to approval) Owned capacity (MW) 1,676 1,672 ▪ Significant customer & environmental value Regulated ✓ ✓ Current license expiration 2032/33 2038/40
Slide 32: Components of investment base
Components of investment base Coal-fired generation—, Zero-carbon— Percentage of total investment base¹ Zero-carbon: Renewable² Zero-carbon: Nuclear Electric transmission/distribution Other Coal Coal: 7% Coal: 4% Other Other Electric Electric transmission/distribution Zero- transmission/distributi
Slide 33: Typical residential electric customer
Dominion Energy Virginia Typical residential electric customer Historic growth rate1 Projected bill CAGR1 Current rate (cents per kWh)2 (2008—2020) (inclusive of VCEA investment) (13%) 18.4 13.4 11.7 2.9% 2.1% 2.2% 1.8% 0.7% Avg. annual DEV Avg. annual DEV RGGI states US 2008—2030E 2019—2030E 2021E
Slide 34: Triennial review process
Dominion Energy Virginia Triennial review process First triennial (“T1”) Second triennial (“T2”) Initial filing March 2021 March 2024 Final order ~November 2021 Late 2024 Years reviewed 2017—2020 (4 years) 2021—2023 (3 years) Allowed return Base ROE + 70 bps collar = 9.9% Base ROE (to be set during
Slide 35: Second triennial review
Dominion Energy Virginia Second triennial review ▪ Initial filing in over three years ▪ Retains key review components ▪ Rider-eligible investment growth ▪ Past, present, & future—Multiple paths that converge on a single objective: serving customers, employees, communities, the environment, and inves
Slide 36: Dominion Energy South Carolina: Operational excellence + meeting commitments
Dominion Energy South Carolina Operational excellence + meeting commitments Commentary Keeping the lights on: Average SAIDI¹ score ▪ DESC has met, and intends to continue to meet, 100% of 146 merger commitments 40% reduction ▪ ~$3B of utility investment and 80,000 new customers since 117 last rate p
Slide 37: Revised Integrated Resource Plan (IRP)
Dominion Energy South Carolina Revised Integrated Resource Plan (IRP) to focus on renewables and decarbonization Next steps Plan comparison (2020—2034)¹ ▪ DESC to refile 2020 IRP this month to incorporate Plan 8 Base case Commission feedback Coal retirement (MW) 1,3002 — ▪ Approach that balances cos
Slide 38: Gas Distribution: Decarbonization and growth
Gas Distribution Decarbonization and growth ➔ Sustainability Robust growth: 3-year customer growth CAGR Enhancing sustainability: Moving beyond Scope I 2.7% 2.6% ▪ ~5% of Dominion Energy CO2e emissions (current) ▪ Ambitious reduction targets: 1.6% Scope I 65% by 2030 / 80% by 2040 / Net Zero by 2050
Slide 39: ESG highlights: Select 2020 milestones
ESG highlights Select 2020 milestones Feb Announced Net Zero carbon and methane emissions by 2050 Summer $40M in commitments to social justice and equity Oct Published annual Sustainability and Corporate Responsibility Report in conformance with GRI, SASB and UN Sustainable Development Goals Oct New
Slide 40: ESG highlights: Select 2021 initiatives
ESG highlights Select 2021 initiatives Jan Formal public support of federal methane regulations for production sources 2Q Updated Climate Report aligned with TCFD Recommendations 2021 Path forward includes increased focus on scope 3 emissions 40
Slide 41: ESG highlights: Independent 3rd party scoring
ESG highlights Independent 3rd party scoring reflects Dominion Energy’s best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership band” band” “Trendsetter” A- A- 91 “Just 100” B B 77 A 69 BBB 55 CDP—Climate CDP—Water MSCI CPA-Zicklin JUST CPA-Zicklin Climate Water 2020 202
Slide 42: Environment: Decarbonization initiatives extend beyond 5-year plan
Environment Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life Up to $15B Total Energ
Slide 43: Appendix
Appendix 43 83 \\\y
Slide 44: Environment: Generation by fuel type
Environment Generation by fuel type Electric generation by fuel type (Mwh) Future: Past: Present: 2035 2005 2020 (est) Renewable 1% 5% 35% ~70% zero carbon Nuclear 36% 40% 34% ~95% Natural gas 7% 45% 26% zero/low carbon Coal 52% 10% <6% Other 4% 0% 0% Note: Historical data pro forma for SCANA merger
Slide 45: Hydrogen: Early-steps to validate long-term use cases
Hydrogen Early-steps to validate long-term use cases Category Use case Initial phase Goal Status Gas Distribution fuel mix Introduce hydrogen into Validate feasibility of blending at Underway distribution blending controlled environment least 5% hydrogen by 2030 (Safety Training Facility) Gas Fleet
Slide 46: ESG: Third party assessments
ESG Third party assessments Continued participation and strong results across assessments A A- A- A- 91 91 91 87 B B B A A 69 Scoring 61 methodology 54 changed in 2020 BBB BBB 47 33 F 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2
Slide 47: Operating segments: Summary
Operating segments Summary State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT UT VA H ID W States of operation Y WV SC CA Southeastern UT & Mid- NC UT Atlantic U.S. NC 2021 operating ~57% ~17% ~13% ~12% earnings contribu
Slide 48: 2020 operating EPS bridge
2020 operating EPS Bridge W/N = weather-normal $3.63 ($0.09) $3.54 Share Share repurchase $0.04 $0.04 repurchase impact $3.50 $3.50 impact Second half drivers vs. Guidance guidance Guidance midpoint midpoint offset full-year weather July 5 midpoint (+) utility July 5th guidance (+)sales (+) & (+) O&
Slide 49: Rate base and EPS growth
Rate base and EPS growth Illustrative bridge ~9% Parent 6.5% financing: Parent DRIP/ATM financing: Parent equity Existing financing: Other mandatory Fixed conversion income (2022) ~1.25% ~1.25% Five-year Long-term EPS rate base growth growth guidance 49
Slide 50: Segment-level disclosure: EPS guidance
Segment-level disclosure Operating earnings per share guidance 2020 actual 2021 guidance 2021E contribution by segment¹ Dominion Energy $2.28 $2.35 —$2.50 Contracted Virginia Assets 12% Dominion Energy Gas Distribution $0.67 $0.73 —$0.75 Virginia Dominion 57% Energy South Dominion Energy Carolina So
Slide 51: Capital structure summary: Year-end 2020
Segment-level disclosure Capital structure summary: Year-end 2020 Corporate & Other debt supported by levered and unlevered segment cash flows Levered Levered Levered Unlevered cash flow cash flow cash flow cash flows incl. Total debt ($B)¹ Millstone $14.6 $35.5 and Cove Point $3.4 $0.8 $13.3 $3.4 S
Slide 52: Five-year growth capital summary
Consolidated financial outlook Five-year growth capital summary Customer growth Zero-carbon generation / other ~$32B & energy storage 18% 52% Gas dist. modernization / ~$32B RNG 2021—2025 10% growth capital Electric transformation¹ 20% ¹ Inclusive of all electric transmission, grid transformation, a
Slide 53: Five-year capital summary
Consolidated financial outlook Five-year capital summary¹ Growth capital $B 2021E 2022E 2023E 2024E 2025E Total Dominion Energy Virginia $2.9 $3.3 $4.7 $6.6 $6.3 $23.8 Gas Distribution 1.2 0.9 0.8 0.7 0.9 4.5 Dominion Energy South Carolina 0.4 0.4 0.3 0.3 0.3 1.7 Contracted Assets 0.3 0.5 0.4 0.7 0.
Slide 54: Dominion Energy Virginia: Overview
Dominion Energy Virginia Overview Electric Electric Distribution Generation Customers Transmission ▪ 6,700 miles of transmission ▪ 58,900 miles of distribution ▪ ~19 GW of capacity ▪ 2.7 million residential, lines in NC, VA and WV lines ▪ Offshore wind, solar, energy commercial, industrial and ▪ Ele
Slide 55: Dominion Energy Virginia: Five-year growth capital summary
Dominion Energy Virginia Five-year growth capital summary Recovery method Base 13% ~$24B ~$24B 2021—2025 growth capital Rider 87% 55
Slide 56: Dominion Energy Virginia: Five-year growth capital outlook
Dominion Energy Virginia Five-year growth capital outlook Offshore wind Solar Transmission Customer growth $4.0B $6.5B 2021—2025 $4.2B $2.1B 2021—2025 growth capital 2021—2025 2021—2025 growth capital Recovery method: growth capital growth capital Rider $1.0B Recovery method: 2021—2025 Recovery meth
Slide 57: Dominion Energy Virginia: Five-year growth capital outlook
Dominion Energy Virginia Five-year growth capital outlook Nuclear Grid Strategic Energy storage relicensing transformation undergrounding $1.8B $1.3B $1.1B $0.9B 2021—2025 2021—2025 2021—2025 2021—2025 growth capital growth capital growth capital growth capital Recovery method: Recovery method: Reco
Slide 58: Dominion Energy Virginia: Five-year growth capital outlook
Dominion Energy Virginia Five-year growth capital outlook Strategic CT Grid undergrounding 3% transformation 4% Offshore wind Nuclear 5% 27% relicensing 6% Renewable- enabling CTs Energy storage 8% ~$24B $0.7B 2021—2025 2021—2025 growth capital Customer growth capital growth 9% Recovery method: Ride
Slide 59: Dominion Energy Virginia: Five-year rate base outlook
Dominion Energy Virginia Five-year rate base outlook DENC 4% DENC VA base 5% 27% VA riders VA riders VA base 43% 24% 37% ~$25B ~$45B 2020E 2025E rate base Other rate base 6% Electric Other Electric transmission 8% transmission 26% 20% Rider: ~50% Rider: ~63% Note: Projected rate base balances do not
Slide 60: Dominion Energy Virginia: Regulatory summary
Dominion Energy Virginia Regulatory summary Electric Legacy A6 Dominion VA base Transmission riders / other Energy Other Total rider riders North Carolina Rate base ~$9.2¹ ~$6.5² ~$6.0³ ~$1.14 ~$2.05 ~$24.8 ($B) Common 52.0% 52.4% 52.0% 52.0% N/A ~52.1% equity % Allowed 9.2% 11.4%6 9.2% - 10.2% 9.75
Slide 61: Dominion Energy Virginia: Rate base reconciliation
Dominion Energy Virginia Rate base reconciliation Illustrative only Total 2020E Dominion Energy Virginia rate base $24.8 (+) capital expenditures 26.7 (-) DD&A (5.8) (-) other (0.9) 2025E Dominion Energy Virginia rate base $44.8 61
Slide 62: Illustrative schematic: 2021 Triennial review
Dominion Energy Virginia Illustrative schematic: 2021 Triennial review of base rate base Procedural schedule: Initial filing—March 2021, Final order— November 2021 Step 1: Determine earned return Step 2: Determine if refund Step 3: Determine if revenue reduction ▪ Calculate regulatory earned ROE Are
Slide 63: Triennial earnings review: ROE
Dominion Energy Virginia Triennial earnings review: ROE Base revenue: (-) Operating expenses Numerator (-) Depreciation, inclusive of impairments (Aggregate of 2017 – (-) Other 2020 individual (-) Interest expense for rate making (based on authorized capital structure) periods) (-) Income tax expens
Slide 64: Customer Credit Reinvestment Offset (CCRO) eligibility
Dominion Energy Virginia Customer Credit Reinvestment Offset (“CCRO”) eligibility Summary CCRO eligible capex by year¹ ($B) ▪ Allows DEV to deploy capital in support of Virginia policy priorities (renewable generation and grid transformation) ~$12B without impacting customer bill ▪ In order to be el
Slide 65: Dominion Energy Virginia: Generation portfolio
Dominion Energy Virginia Generation portfolio Summer Summer Summer Cap. Cap. Cap. Plant Location Type (MW) Plant Location Type (MW) Plant Location Type (MW) Surry Surry, VA Nuclear 1,676 Gaston Roanoke Rapids, NC Water 220 Grasshopper Mecklenburg County, VA Solar 80 North Anna Mineral, VA Nuclear 1,
Slide 66: Gas Distribution: Five-year growth capital summary
Dominion Energy Gas Distribution Five-year growth capital summary Business and recovery method 2021 – 2025 growth capital ($B) RNG 14% ~$4.5B OH WV 35% 7% $4.5B NC 17% Contracted 14% UT Rider 26% 55% $4.5B Base 31% 66
Slide 67: Gas Distribution: Five-year growth capital outlook
Dominion Energy Gas Distribution Five-year growth capital outlook Ohio Utah North Carolina Renewable natural Decoupled Decoupled Decoupled gas $1.6B $1.2B $0.8B $0.6B 2021—2025 2021—2025 2021—2025 2021—2025 growth capital growth capital growth capital growth capital Pipeline replacement Pipeline rep
Slide 68: Gas Distribution: Five-year rate base outlook
Dominion Energy Gas Distribution Five-year rate base outlook WV 5% WV 4% NC 17% NC 19% Ohio 51% ~$9B Ohio ~$14B 2020E 51% 2025E rate base rate base Utah 27% Utah 27% 68
Slide 69: Gas Distribution: Regulatory summary
Dominion Energy Gas Distribution Regulatory summary Utah and Ohio North Carolina West Virginia Total Wyoming Rate base $4.4 $2.3 $1.6 $0.3 $8.7 ($B) Common 51.3% 63.3%1 52.0% 49.1% 54.6%2 equity % Allowed 10.4% 10.0%1 9.7% 9.5% 10.1%2 ROE Customers 1.2M 1.1M 0.6M 0.1M 3.1M Notes: 1 Weighted average
Slide 70: Gas Distribution: Rate base reconciliation
Dominion Energy Gas Distribution Rate base reconciliation Illustrative only $B 2020E Dominion Energy Gas Distribution rate base $8.7 (+) capital expenditures 6.0 (-) DD&A (1.8) (+) other 0.9 2025E Dominion Energy Gas Distribution rate base $13.8 70
Slide 71: Dominion Energy South Carolina: Five-year growth capital summary
Dominion Energy South Carolina Five-year growth capital summary Electric grid transformation 14% $1.7B Generation 33% Gas $1.7B 28% Rider¹ 28% Electric customer growth 24% $1.7B Base 72% ¹ Represents growth capital under Natural Gas Rate Stabilization Act 71
Slide 72: Dominion Energy South Carolina: Five-year growth capital outlook
Dominion Energy South Carolina Five-year growth capital outlook Electric customer Electric grid Generation Gas growth transformation $0.4B $0.2B $0.6B $0.5B 2021—2025 2021—2025 2021—2025 2021—2025 growth capital growth capital growth capital growth capital Customer growth AMI Generation modernizatio
Slide 73: Dominion Energy South Carolina: Five-year rate base outlook
Dominion Energy South Carolina Five-year rate base outlook CCR 11% Electric CCR 76% 22% Electric Gas 69% 13% ~$9B ~$10B Gas 2020E 2025E 9% rate base rate base 73
Slide 74: Dominion Energy South Carolina: Summary
Dominion Energy South Carolina Summary DESC: DESC: DESC: Total Electric Gas CCR Rate base $5.8 $0.8 $1.9 $8.5 ($B) Common 52.56%1 53.14% 52.81% 52.7%2 equity % Allowed 10.25% 9.9% 9.9% 10.1%2 ROE Customers 0.8M 0.4M – 1.2M Notes: 1 Actual common equity balance as of 12/31/19. 2 Rate base weighted av
Slide 75: Dominion Energy South Carolina: Rate base reconciliation
Dominion Energy South Carolina Rate base reconciliation Illustrative only $B 2020E Dominion Energy South Carolina rate base $8.5 (+) capital expenditures 4.2 (-) DD&A (1.8) (-) other (0.7) 2025E Dominion Energy South Carolina rate base $10.2 75
Slide 76: Capital Cost Rider (CCR)
Dominion Energy South Carolina Capital Cost Rider (“CCR”) The capital cost rider was approved under terms of the South Carolina PSC merger approval in late 2018 ▪ Allows recovery of and return on ~$2.8B of New Nuclear Development costs ▪ Disallowed recovery/permanently impaired the other ~$2 billion
Slide 77: Typical residential electric customer
Dominion Energy South Carolina Typical residential electric customer Pre and post merger rate (cents per kWh) Current rate (cents per kWh) ~14.8 (8%) 15% bill reduction relative to pre- 13.4 merger levels (4%) 12.7 ~12.5 12.2 2017 2019 DESC South Carolina US (Pre merger) (Post merger) Note: May 2017
Slide 78: Dominion Energy South Carolina: Generation portfolio
Dominion Energy South Carolina Generation portfolio Summer Fuel Type Summer Cap. (MW) (%) Plant Location Type Cap. (MW) Gas 2,513 38.5% Jasper (CC) Hardeeville, SC Gas 852 Coal 1,704 26.1% Columbia Energy Center (CC) Gaston, SC Gas 519 Hydro 784 12.0% Urquhart (CC) Beech Island, SC Gas 458 Nuclear 6
Slide 79: Contracted assets: Overview
Contracted assets Overview¹ Segment operating income contribution Solar Millstone Cove Point 15% 40% 45% ▪ 15-to-20-year contracts ▪ 9 million MWh (~55% of ▪ 50% non-operating with high-quality annual output) for 9 interest counterparties remaining years; fixed ▪ 20 year take-or-pay ▪ ~1,400 MWs in-
Slide 80: Contracted assets: Five-year growth capital outlook
Contracted assets Five-year growth capital outlook $2.2B $2.2B Contracted solar 100% 80
Slide 81: Contracted assets: 2021 Millstone energy position
Contracted assets 2021 Millstone energy position Millstone hedging as of February 2021 1% open 0.2M MWh Contract price 54% long-term recognizes 16.2M contracted regional MWh in 8.7M MWh economic, tax & $49.99 environmental 45% 2021 benefits hedged 7.3M MWh $34.51 ~99% of 2021 volumes de-risked at vo
Slide 82: Contracted assets: Generation portfolio
Contracted assets Generation portfolio Summer Summer Summer Cap. Plant Location Type Cap. (MW) Plant Location Type Cap. (MW) Fuel Type (MW) (%) Millstone Waterford, CT Nuclear 2,001 Alamo Solar Oro Grand, CA Solar 13 Nuclear 2,001 58% ASFV – Southampton Newsoms, VA Solar 100 CID Solar Corcoran, CA S
Slide 83: Customers: State-regulated utilities
Customers State-regulated utilities Segment summary as of 12/31/2020 State summary Twelve months ended DE Customers December 31 South Carolina 12/31/2020 (M) Gas Distribution ‘18-’20 CAGR 1.2M 3.1M 17% DE Virginia 1.2% 2.7 44% DE South Carolina 2.4% 1.2 Electric 1.9% 0.8 Gas 3.3% 0.4 6.9M state util
Slide 84: Weather: After-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2020 YTD Dominion Energy Virginia2 ($58) ($16) $35 ($21) ($60) Versus normal¹ Dominion Energy South Carolina3 (9) (9) (3) $11 (10) Gas Distribution4 (5) 2 0 (1) (4) Total ($72) ($23) $32 ($11) ($74) Q1 Q2 Q3 Q4 2020 YTD Dominion Energy Virginia2 ($26) ($22)
Slide 85: Weather: Degree days
Weather Degree days Quarter ended 12/31 Twelve months ended 12/31 2020 2019 2020 2019 Actual 1,062 1,217 2,970 3,259 Heating Normal 1,267 1,251 3,557 3,527 Dominion Energy Virginia Actual 51 83 1,759 2,031 Cooling Electric Normal 53 56 1,651 1,682 Actual 464 481 1,074 1,179 Heating Dominion Energy S
Slide 86: Fixed income: 2021 long-term debt financing activities
Fixed income 2021 long-term debt financing activities ($M)¹ Issuance range Scheduled debt maturities Net issuances Dominion Energy Virginia $700—$1,000 $0 $700—$1,000 Gas Distribution $300—$500 $150 $150—$350 Dominion Energy South Carolina $400—$600 $33 $400—$600 Contracted Assets $0 $0 $0 DEI $3,00
Slide 87: Fixed income: Schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of December 31, 2020 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 12/31/2020 Long-term at 12/31/2020 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2022-2050 4.14% $ - $ 12,689 DE Virgi
Slide 88: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of December 31, 2020 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC CA Corp & Other Total 2021 4.59% Private Placement Senior Notes 02/14/21 PSNC - 150 - - - 150 364-Day Revolving Credit Facility (variable) 03/18/21 DEI - - - - 225 225 4
Slide 89: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of December 31, 2020 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC CA Corp & Other Total 2024 3.45% 2014 Series A Senior Notes 02/15/24 VEPCO 350 - - - - 350 3.496% 2017 Series C Senior Notes 03/15/24 DEI - - - - 300 300 3.071% Junior S
Slide 90: Fixed income: Credit Ratings
Fixed income Credit Ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 91: Fixed income: Credit Ratings (cont'd)
Fixed income Credit Ratings (cont’d) Dominion Energy Ohio Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Positive Stable DESC Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ First Mortgage Bonds A3 A A Short-Term/Commercial Paper P-2 A-2 F2
Slide 92: Fixed income: Company-modeled CFO pre-WC to debt
Fixed income Company-modeled CFO pre-WC to debt Net cash provided by operating activities (-) Changes in working capital Numerator 2020 one-time adjustments: (-) Capitalized interest (Note 2. Property, Plant and Equipment) GT&S sale $650M—$700M Source: 10K (+) Depreciation component of operating lea
Slide 93: Fixed income: Schedule of liquidity position
Fixed income Schedule of liquidity position ($ billions, as of December 31, 2020) $6.0 $0.7 $6.1 $5.3 $0.1 ($0.7) Total committed (-) (=) (+) (+) (=) bank lines Commercial paper Total available Cash and short-term Supplementary Total liquidity outstanding / LOC¹ capacity investment on revolver (unfu
Slide 94: Fixed income: Schedule of change in capitalization
Fixed income Schedule of change in capitalization Change in Debt (Long-Term Debt plus Securities Due Within One Year) Change in Debt (Long-Term Debt plus Securities Due Within One Year) Balance as of December 31, 2019 1 $ 31,460 Other: Issuances: Change in Finance Leases and Other Long-Term Debt 785
Slide 95: Pension: Overview
Pension Overview Total¹ Asset returns 17.7% Assets ($B) $11.0 Fixed income 11.6% Allocation 33% 10.6% 2021 EROPA 9.6% 9.8% assumption: targets2 67% Equity+ 8.35% cash³ EROPA4 8.35% Funded status (GAAP) 97% 1-year 3-year 5-year 7-year 10-year 1 Allocation targets, EROPA and funded status shown as wei